The Growing East-West Economic Split in Australia

10 posts

Niccolo and Donkey

There's a commodity-based economic boom taking place in Western Australia due to the voracious appetite of the Chinese for these minerals:

The divide:

On the boom and the attempts to ensure that it doesn't spiral out of control:

More on the boom:

The effect on the Australian economy:

A dependence on China:


The West Australians actually voted to secede in 1933. It never made it pas the Privy Council. They will never be allowed to anyway. The Yanks would not permit it. I for one would prefer to cut off Queensland and NSW and merge them into New Zealand. These are big homosexualist nations that like the rugby.

Victoria, Tasmania, SA, WA and the Northern Territory would remain and play Aussie Rules.


It is an interesting one though. Having lived overseas for the best part 10 years I have really noticed how much wealthier Australia seems than when I left. It may be because I was right up close to a lot of the shit when it was going down in the UK/US ... when HBOs and RBS went under and stuff ... but people here have absolutely no sense of just how fucked up places like Britain and Ireland the US are. People sort of joke about the 'financial crisis' as something that happened to other people, not us.

Yup. They all joke about it until it happens to them. Canada and Australia will join the rest soon enough.
Cadavre Exquis
How do you figure that?
Cadavre Exquis
President Camacho

This is fascinating to me:

Will this boom in the West initiate the founding of any new cities on the Western coast of Australia, or are there insufficient water resources to sustain 2+ cities? (Obviously the mining is inland, but most live/commute from Perth it seems). Or will Perth simply keep growing as a megalopolis?

That's excellent
Same pattern of housing bubble caused by credit expansion leading to over-indebtedness and falling home sales. Next, prices drop and the economy start contracting. Then the banks will need bailouts.
Cadavre Exquis
Australia is in a very different position. While household debt levels are as high as they were in the US, lending requirements are much more stringent. On the east coast, housing demand isn't easing up and isn't likely to for the next decade.

I think there will be a price drop in housing, but it will be relatively small.
Oh, ok.